Tools of the trade

The war for talent has left no industry unscathed. As the 21st century marches on, companies around the world have honed their ability to recruit and retain the best to the highest point. Any edge over the competition in this regard is critical to staying on top.

Recognizing when good people are already on board is part of that skill, as is developing a nurturing culture around them. It’s something Dan Starr, President and CEO of United States-based hardware and building materials buying cooperative Do it Best, understands implicitly.

“It’s so hard right now to attract and retain key talent, but we have great people here, and there’s a good reason for that,” he tells The CEO Magazine.

“Building good relationships is important for the here and now, and also over time.”

“When you build a culture that invites people into a service-led environment, where you treat them with kindness, dignity and respect, where you invest in them and hand over key responsibilities so they can improve not just in their profession but also get real satisfaction from their work in a collaborative team environment, that provides people purpose, and I think that’s really important,” he says.

This culture was imbued in Starr long before he took on the President and CEO roles in 2016, while he was part of Do it Best’s HR department for seven years. That experience informs much of his leadership today.

“In my original capacity I was both General Counsel and Vice President of HR,” he recalls. “It was a dual role that cut across the breadth of the enterprise.”

Growing the business

After being promoted to COO in 2012 and then CEO in 2016, Starr began to focus on growing a business that had weathered the home improvement industry’s many challenges – and challengers – since it was established in 1945.

“We serve over 4,000 independent shareholders, or members as we call them, because we’re organized as a cooperative,” he explains. “They’re independently owned and operated hardware stores, home centers and lumber yards serving the DIY and the professional alike.”

Welcoming more members into the Do it Best fold is a prime opportunity for growth in a thriving sector, he adds.

“We enable members to grow and we utilize not only organic growth but also acquisition growth. We want to make them better businesses as we go,” he says.

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“We enjoy a collaborative approach to opportunities with Do it Best, which helps us grow together while focusing on areas of business that are beneficial for both of our companies.” – Shad Hansen, SVP, Milwaukee Tool

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The challenge of doing so is that each of those members is engaged in running a business, something that leaves little time for communication.

“You’re challenged for their attention. You have to be able to give guidance that hits at the same time and the same way, and it’s tough to be able to do that effectively,” he admits.

Starr says the ongoing integration of a modularized enterprise resource planning software system will help change that.

“Once completed, it represents a generational leap and a significant investment on our part,” he says. “Our careful approach ensures we maximize the benefits of this transformation over the next 18–24 months, securing the highest return on our investment.”

Hitting the nail on the head

According to Starr, another target area for improvement is Do it Best’s hard assets, from warehouses to the physical infrastructure inside.

“They’re areas of opportunity, and it’s a continuous improvement process,” he points out.

Just as Starr prioritizes the internal relationships, Do it Best also maintains strong partnerships with vendors and manufacturers.

“We call them our vendor community and those relationships go back a long time,” he says. “Our industry, all things considered, is relatively small, and people don’t tend to leave it. Building good relationships is important for the here and now, and also over time.”

“We enable members to grow and we utilize not only organic growth but also acquisition growth. We want to make them better businesses.”

To replenish the thousands of stock keeping units of Do it Best’s member base, Starr says his business keeps close to manufacturers such as Milwaukee Tool.

“There are product manufacturers across various segments we’ve had strong growing relationships with for years, and that allowed us to fare better than the competition during the COVID-19 years. Scarcity was an issue, but we could work through those unique problems together,” he confirms.

It’s another arm of the kind of collaborative team environment Starr prizes above all.

“When you invite people into a strong and growing business, and give them a lot of direct connection within it so that they remain engaged, that’s going to spell success no matter what industry you’re in.”